Green infrastructure bonds
Bank of Baroda’s Green Infrastructure Bonds
“The Green Infrastructure Bond issue marks a significant milestone for Bank of Baroda and a defining moment for India’s domestic ESG bond market,” said Debadatta Chand, a key participant in the initiative.
On March 6, 2026, Bank of Baroda announced it had raised ₹100 billion through the issuance of green infrastructure bonds aimed at supporting renewable energy and sustainable infrastructure projects across India.
The bonds, which will run for seven years, were issued via the National Stock Exchange’s Electronic Book Platform. This innovative approach allowed the bank to tap into a growing market for environmentally focused investments.
The Series I Long-Term Green Infrastructure Bonds attracted total bids of ₹164.15 billion, significantly exceeding the base issue size of ₹50 billion. This overwhelming response underscores the increasing interest in green financing among investors.
Bank of Baroda will offer an annual interest rate of 7.1% on these bonds, making them an attractive option for those looking to invest in sustainable initiatives.
The proceeds from the bond issue will be allocated to eligible green projects that align with the bank’s Green Financing Framework, further emphasizing its commitment to sustainability.
Notably, Bank of Baroda has become the first Indian bank to issue long-term green infrastructure bonds locally, setting a precedent for future initiatives in the country.
The bond issue received bids worth ₹16,415 crore, more than three times the base issue size, reflecting strong market confidence in the bank’s green initiatives.
These bonds have been assigned ‘AAA’ ratings with a stable outlook by CARE Ratings and ICRA Limited, indicating robust financial backing and investor trust.
In addition to this bond issuance, Bank of Baroda has previously introduced the bob Green Hydrogen Financing Scheme, aimed at supporting green hydrogen production facilities for captive usage, further diversifying its green financing efforts.
As the market for green infrastructure bonds continues to evolve, stakeholders are keenly observing the developments and potential impacts on India’s sustainable finance landscape.
